Chinas economic rise

Maryam Tariq

Tuesday, May 21, 2013 - China is the most populous nation on earth, with 1.3 billion populations. After US its GDP lies with 13% of the world output. For the past 20 years its economy is growing with an average of 9.5% annually. This dramatic change in the economy of China has attracted much foreign direct investment. Since China became the member or part of world Trade Organization in December 2001 it creates opportunities for the developing world as well. Since 1978, China has reformed its economy. The Chinese leadership has implemented a more logical perspective on many political and socioeconomic problems and has reduced the role of ideology in economic policy. Chinas on-going economic transformation has had a deep impact not only on China but on the world. The marketoriented reforms China has introduced over the past 2 decades have released from individual initiative and incredible numbers. The result is been the largest reduction of poverty and one of the fastest increases in income levels in present times. China in 2010 overtook Japan to become the worlds second-largest economy in terms of gross domestic product, behind the United States. In 2010 its US dollars 5.88 trillion Economy was just over one-third the size of the US Economy. China is hardly committed to Economic reforms and opening to the outside world. The Chinese leadership has identified reforms of state technology industries, the establishment of a social safety net, reduction of the income gap, protection of the environment, and development of clean energy as government priorities and many Government plans for achieving goals include largescale privatization of unprofitable state-owned enterprises, development of a pension system for workers, establishment of an effective and affordable health care system, building environmental requirements into promotion criteria for government officials, and increasing rural incomes to allow domestic demand to play a greater role in driving economic growth. The leadership has also down sized the government bureaucracy. In the 1980s, China tried to combine central planning with new market-oriented reforms to increase the rate of productions, life standards, and technological qualities without increase in inflation, budget deficits unemployment. It overtake the agricultural reforms, depriving the discussion system and leading a household-based system that provided farmers greater decision-making in agricultural activities. The government also encouraged non-agricultural activities such as village initiatives in the form of village enterprises in rural areas, encouraged more self-management for state-owned enterprises, increased competition in the marketplace, and simplified direct contact between Chinese and foreign trading enterprises. China also relied more upon imports and foreign financing. During the 1980s, these reforms controlled to average annual growth rates of 10 percentages in industrial and agricultural output. The Rural per capita real income doubled. China became selfsufficient in agriculture (grain production); rural industries accounted for 23 percentages of agricultural output, helping engage surplus labour in the landscape. The variety of light industrial and customer goods increased. Reforms began in the monetary, financial, banking, price-setting, and labour systems. The Fifth Plenum in October 2005 permitted the 11th Five-Year Plan expected at building a harmonious society through more balanced wealth distribution and improved education, medical care, and social security. The 12th Five-Year Plan was debated in mid-October 2010 at the fifth entire session of the 17th Central Committee of the CCP, and permitted by the National Peoples Congress during its annual session in March 2011. China is continuously exporting into the market of chinas main trade partners namely E.U, Japan

and U.S and the GDP growth of china is on the rising trend since 2001 and is in the Process of continues growth and its also affecting the world economic system. Since the year2002 chinas foreign reserves are growing. China has the largest amount of foreign reserves in the year 2007. It is believed that political reform of the country depends on the economic development the best example comes from East Asia. And as the economies of the countries grow the reforms will take place and there will be decline in different conflicts and same will happen in the case of China as well. It is to conclude that no one wants the collapse of China and the economic prosperity also create peace in the region. The writer works for IPRI.